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IMPROVING THE POTENTIAL TO FORECAST DEMAND FOR WINE BY<br />

TESTING CONSUMERS SELF-REPORTING ON WINE CONSUMPTION<br />

THROUGH A RETROSPECTIVE STUDY<br />

Damien Wilson<br />

University of South Australia<br />

Track: Conceptual papers/ marketing <strong>the</strong>ory<br />

Key words: Forecasting, Retrospective studies<br />

Abstract<br />

Demand <strong><strong>for</strong>ecast</strong>ing can be used <strong>by</strong> <strong>the</strong> <strong>wine</strong> industry <strong>to</strong> improve its capacity <strong>to</strong> cater<br />

<strong>to</strong> <strong>the</strong> needs of consumers. Years of behavioural data are required <strong>to</strong> implement <strong>the</strong><br />

process of <strong>demand</strong> <strong><strong>for</strong>ecast</strong>ing as patterns of behaviour are extrapolated <strong>to</strong> a period in<br />

<strong>the</strong> future. However, <strong>the</strong> <strong>wine</strong> consumption patterns of Australians are relatively<br />

unknown. With <strong>the</strong> exception of data from a study in 1994/5 and 1998, <strong>the</strong>re is little<br />

evidence that can confirm <strong>the</strong> patterns of <strong>wine</strong> consumption <strong>by</strong> individuals. There<strong>for</strong>e<br />

<strong>the</strong> <strong>wine</strong> consumption patterns of Australian consumers must be empirically<br />

generalised be<strong>for</strong>e <strong><strong>for</strong>ecast</strong>ing can occur.<br />

Introduction<br />

The past ten years have witnessed unprecedented growth in <strong>demand</strong> <strong>for</strong> Australian<br />

<strong>wine</strong>, both locally and in export markets. This has driven a growth in production<br />

capacity in an ef<strong>for</strong>t <strong>to</strong> satisfy <strong>demand</strong> growth. It is only now, after decades of<br />

capacity growth that <strong>the</strong> Australian <strong>wine</strong> industry is experiencing an oversupply of<br />

grapes <strong>to</strong> <strong>the</strong> market. This situation is manifest in <strong>the</strong> statistics showing Australia<br />

produces almost three times <strong>the</strong> volume of <strong>wine</strong> consumed <strong>by</strong> its population (Awbc<br />

2002). Fur<strong>the</strong>r, many export markets are also reaching saturation point, and domestic<br />

consumption is relatively static (Scott 2003).<br />

Producers have been planting grapevines in earnest, <strong>to</strong> try and keep up with <strong>demand</strong><br />

over <strong>the</strong> past ten years. However, <strong>the</strong> substantial lag-phase from growth <strong>to</strong> market<br />

release has resulted in current <strong>demand</strong> being satisfied, but pending supply excesses in<br />

coming years. This serves as a convincing argument that in future, attention should<br />

be directed <strong>to</strong> methods that can aid with more accurate <strong><strong>for</strong>ecast</strong>ing of <strong>wine</strong> <strong>demand</strong>.<br />

To calculate <strong>potential</strong> <strong>demand</strong>, extended data series must be analysed <strong>to</strong> enable<br />

<strong><strong>for</strong>ecast</strong>ing. Typically, long-range <strong><strong>for</strong>ecast</strong>s are generated through econometric<br />

methods, or extrapolation of his<strong>to</strong>rical patterns <strong>to</strong> some period in <strong>the</strong> future<br />

(Armstrong 1999). Patterns of consumer behaviour can only be analysed if <strong>the</strong>re are<br />

sufficient number of periods of data <strong>to</strong> enable an analysis of <strong>the</strong> trends in data <strong>to</strong> be<br />

applied <strong>to</strong> some period in <strong>the</strong> future. A recent review of 8 quantitative <strong><strong>for</strong>ecast</strong>ing<br />

models fur<strong>the</strong>r rein<strong>for</strong>ced <strong>the</strong> intuition that <strong>the</strong> longer <strong>the</strong> calibration period <strong>the</strong> closer<br />

<strong>the</strong> fit of <strong>the</strong> model – any of <strong>the</strong> models – <strong>to</strong> observed data (Hardie, Fader and<br />

Wisniewski 1998). In fast moving consumer good (FMCG) markets this is important;<br />

in <strong>the</strong> <strong>wine</strong> industry, we contend that obtaining longitudinal data is critical.<br />

Conceptual Papers / Marketing Theory Track 686


Un<strong>for</strong>tunately, <strong>the</strong> patterns of <strong>wine</strong> consumption are relatively unknown as <strong>the</strong>re is<br />

little empirical evidence of <strong>the</strong> habits of <strong>wine</strong> consumers. There are two studies on<br />

<strong>the</strong> population’s <strong>wine</strong> consumption habits, from <strong>the</strong> Australian Bureau of Statistics<br />

(ABS) in 1994/5 and 1998, but in isolation, <strong>the</strong>se cross-sectional studies are of little<br />

use in <strong><strong>for</strong>ecast</strong>ing <strong>demand</strong>. However, an argument can be made that if consumers’<br />

his<strong>to</strong>rical patterns of <strong>wine</strong> consumption can be confirmed with data from <strong>the</strong>se two<br />

samples, empirical evidence on <strong>wine</strong> consumption could be generated retrospectively.<br />

Consequently, this study proposes <strong>the</strong> use of a retrospective survey method as a way<br />

of investigating consumers’ <strong>wine</strong> consumption habits over <strong>the</strong>ir lives.<br />

Evidence of retrospective studies in marketing is difficult <strong>to</strong> find. However, <strong>the</strong><br />

process of a retrospective cohort study is well established in <strong>the</strong> field of<br />

epidemiology. This paper suggests <strong>the</strong> his<strong>to</strong>rical consumption patterns of Australians<br />

are investigated using <strong>the</strong> established methodology <strong>for</strong> a retrospective cohort study.<br />

The findings can be tested against <strong>the</strong> data provided <strong>by</strong> <strong>the</strong> ABS in 1994/5 and 1998<br />

<strong>for</strong> validity of <strong>the</strong> study.<br />

This study contributes <strong>to</strong> <strong>the</strong> development of a new methodology <strong>for</strong> validating <strong>the</strong><br />

behaviours of consumers in past periods. Additionally, if consumers can be shown <strong>to</strong><br />

recall <strong>the</strong>ir <strong>wine</strong> consumption patterns, <strong>the</strong>ir patterns of consumption can be<br />

evaluated, and <strong><strong>for</strong>ecast</strong>ing of future consumption can be made with improved<br />

accuracy.<br />

The first section of this paper explains <strong>the</strong> background <strong>to</strong> <strong>demand</strong> <strong><strong>for</strong>ecast</strong>ing and <strong>the</strong><br />

benefits of <strong>the</strong> process <strong>for</strong> industry. The second section highlights <strong>the</strong> in<strong>for</strong>mation<br />

required <strong>for</strong> applying <strong>the</strong> principles of <strong>demand</strong> <strong><strong>for</strong>ecast</strong>ing. The third section outlines<br />

<strong>the</strong> goal of generating empirical data on his<strong>to</strong>rical <strong>wine</strong> consumption. The next<br />

section details <strong>the</strong> methodology used in epidemiology <strong>for</strong> surveying respondents on<br />

<strong>the</strong>ir retrospective behaviours, and how it can be applied <strong>to</strong> this study. The final<br />

section summarises <strong>the</strong> concept of this paper be<strong>for</strong>e suggesting fur<strong>the</strong>r directions <strong>for</strong><br />

this study.<br />

Demand Forecasting<br />

Demand <strong><strong>for</strong>ecast</strong>ing is <strong>the</strong> process of using his<strong>to</strong>rical data on consumption in order <strong>to</strong><br />

anticipate future <strong>demand</strong> <strong>for</strong> a product or service (Smith, Herbig, Milewicz and<br />

Golden 1996; Armstrong 1999). Industries budget <strong>for</strong> <strong>potential</strong> <strong>demand</strong> as a way <strong>to</strong><br />

allocate resources <strong>to</strong> a firm’s operations. However, <strong>to</strong> enable a reliable <strong><strong>for</strong>ecast</strong> of<br />

<strong>demand</strong>, <strong>the</strong> approximate number of consumers and <strong>the</strong>ir probability of consumption<br />

need <strong>to</strong> be known <strong>by</strong> <strong>the</strong> <strong><strong>for</strong>ecast</strong>er (Massy 1969). The problem in <strong>the</strong> <strong>wine</strong> industry<br />

in Australia is that nei<strong>the</strong>r of that in<strong>for</strong>mation is available as <strong>the</strong>re is little data on <strong>the</strong><br />

consumption habits of <strong>the</strong> population.<br />

Applications <strong>to</strong> <strong>the</strong> Wine Industry<br />

To <strong><strong>for</strong>ecast</strong> <strong>demand</strong> in <strong>the</strong> <strong>wine</strong> industry, <strong>the</strong>re are three main options: 1. Assume<br />

that production and consumption occur at <strong>the</strong> same time; 2. Use sales data, assuming<br />

that sales and consumption occur concurrently; or 3. Use actual consumption data.<br />

<strong>ANZMAC</strong> 2003 Conference Proceedings Adelaide 1-3 December 2003 687


For <strong>the</strong> first option, <strong>the</strong> production data from year <strong>to</strong> year is available from <strong>the</strong> ABS<br />

as ‘apparent [<strong>wine</strong>] consumption’ data (Abs 2003). The ABS has recorded apparent<br />

<strong>wine</strong> consumption habits of Australians since <strong>the</strong> early 1940s (Abs 2003). However,<br />

problems arise in that inven<strong>to</strong>ries in <strong>the</strong> distribution channel are not considered, nor is<br />

<strong>the</strong> <strong>potential</strong> that <strong>wine</strong> may be matured <strong>for</strong> up <strong>to</strong> five years after harvest be<strong>for</strong>e release<br />

<strong>to</strong> <strong>the</strong> market (Halliday and Johnson 1994).<br />

The second option of using sales data seems more appropriate. However, sales data is<br />

difficult <strong>to</strong> capture from all firms selling <strong>wine</strong> in <strong>the</strong> market. Fur<strong>the</strong>r, <strong>the</strong><br />

demographic characteristics of consumers are not provided. Additionally, <strong>the</strong><br />

consumer’s propensity <strong>to</strong> share <strong>wine</strong> with ano<strong>the</strong>r, or <strong>to</strong> offer <strong>the</strong> <strong>wine</strong> as a gift is not<br />

a consideration with this method. Authors have laid claims <strong>to</strong> knowledge on <strong>the</strong><br />

patterns of <strong>wine</strong> consumption, but <strong>the</strong>se figures have been based on sales data, not<br />

actual consumption. There is no doubt that <strong>wine</strong> sales have a close relationship with<br />

<strong>wine</strong> consumption. However, <strong>the</strong> relationship between sales and consumption is not<br />

clearly defined.<br />

This leaves <strong>the</strong> use of actual consumption data as <strong>the</strong> only viable option. The written<br />

his<strong>to</strong>ry of <strong>wine</strong> consumption in Australia asserts <strong>the</strong>se details: Up <strong>to</strong> <strong>the</strong> 1960s, <strong>wine</strong><br />

consumption is believed <strong>to</strong> have been dominated <strong>by</strong> <strong>for</strong>tified <strong>wine</strong> consumption<br />

(Johnson 1971; Bees<strong>to</strong>n 1994). The 1970s witnessed a growth in white <strong>wine</strong><br />

consumption, and this pattern is believed <strong>to</strong> have held through <strong>the</strong> 1980s and in<strong>to</strong> <strong>the</strong><br />

early 1990s (Gluckman 1986; Bees<strong>to</strong>n 1994; Cartiere 1997). The mid-90s saw <strong>the</strong><br />

pattern change <strong>to</strong> dominance in red <strong>wine</strong> production (Awbc 2002), and <strong>the</strong> existence<br />

of consumption data shows red <strong>wine</strong> becoming <strong>the</strong> preferred style of Australians<br />

(Stan<strong>for</strong>d 2000). These patterns seem quite clear. However, with <strong>the</strong> exception of<br />

Stan<strong>for</strong>d’s paper, all authors use <strong>the</strong>ir observations and knowledge of <strong>the</strong> <strong>wine</strong><br />

industry without supporting <strong>the</strong>se assertions with empirical evidence. Consequently,<br />

<strong>the</strong> actual patterns of <strong>wine</strong> consumption are relatively unknown.<br />

There<strong>for</strong>e, <strong>the</strong> problem associated with using actual <strong>wine</strong> consumption data is that<br />

very little of it exists. Fur<strong>the</strong>r complicating <strong>the</strong> problem is that years of detailed<br />

consumption data have <strong>to</strong> be used in order <strong>to</strong> make <strong><strong>for</strong>ecast</strong>s of <strong>potential</strong> <strong>demand</strong>.<br />

However, <strong>the</strong>re is some documented his<strong>to</strong>ry of <strong>wine</strong> consumption in Australia from<br />

<strong>the</strong> ABS. In late-1994 and early 1995 <strong>the</strong> ABS surveyed consumers on <strong>the</strong>ir actual<br />

alcohol consumption <strong>for</strong> <strong>the</strong> first time, repeating <strong>the</strong> study in 1998.<br />

Conceptual Papers / Marketing Theory Track 688


Epidemiology and Marketing<br />

There is some precedent <strong>for</strong> using epidemiological techniques in <strong>the</strong> marketing area.<br />

Indeed, <strong>the</strong> Bass Model (1969) draws on roots in epidemiology in describing <strong>the</strong><br />

manner in which a <strong>potential</strong> market adopts a new product, idea, concept over<br />

successive time periods (Mahajan and Muller 1979). However, <strong>the</strong> Bass model uses<br />

empirically generalised data <strong>to</strong> define patterns of adoption. In this study, <strong>the</strong> data is<br />

yet <strong>to</strong> be generated.<br />

In order <strong>to</strong> investigate patterns of consumption, a study needs <strong>to</strong> be conducted over a<br />

long period. Studies that use <strong>the</strong> same respondents over extended time-lines are<br />

known as longitudinal studies (Guest 1944, 1955, 1964; Alanko 1984; Kelsey,<br />

Thompson and Evans 1986; Hennekens and Buring 1987; Giovannucci, Colditz,<br />

Stampfer, Rimm, Litin, Sampson and Willett 1991; Shatzberg 1995; Neuman 1997;<br />

Godden 1999). The epidemiological methods of investigating respondents’<br />

behaviours over extended periods are a prospective cohort study, case-control study<br />

and retrospective cohort study. The details of each of <strong>the</strong>se methods are outlined<br />

below.<br />

A prospective cohort study [usually referred <strong>to</strong> as a cohort study] is where subjects<br />

are classified based on <strong>the</strong>ir exposure <strong>to</strong> a particular fac<strong>to</strong>r that is hypo<strong>the</strong>sised <strong>to</strong><br />

predetermine a course of action. The exposed and unexposed groups are <strong>the</strong>n<br />

moni<strong>to</strong>red over time <strong>for</strong> <strong>the</strong> development or o<strong>the</strong>rwise of <strong>the</strong> course of action being<br />

investigated (Hennekens and Buring 1987; Kahn and Sepos 1989).<br />

Retrospective studies are where an outcome is observed in a number of respondents.<br />

The respondents are questioned on <strong>the</strong>ir exposure or o<strong>the</strong>rwise <strong>to</strong> an [hypo<strong>the</strong>sised]<br />

influencing fac<strong>to</strong>r. Additionally, a comparable group of respondents who do not<br />

exhibit <strong>the</strong> outcome should also be queried as <strong>to</strong> any exposure <strong>to</strong> <strong>the</strong> influencing<br />

fac<strong>to</strong>r in an attempt <strong>to</strong> falsify a cause [or vice-versa] (Hennekens and Buring 1987;<br />

Kahn and Sepos 1989).<br />

“In a retrospective cohort study <strong>the</strong> investiga<strong>to</strong>r identifies a cohort of individuals based on <strong>the</strong>ir<br />

characteristics in <strong>the</strong> past and <strong>the</strong>n reconstructs <strong>the</strong>ir subsequent experience up <strong>to</strong> some defined point in<br />

<strong>the</strong> more recent past or up <strong>to</strong> <strong>the</strong> present time” (Kelsey et al. 1986)<br />

Retrospective cohort studies have advantages over prospective studies because cohort<br />

studies are conducted over long periods, and <strong>the</strong>re is a drop in respondent numbers<br />

over time. Consequently, any reduction in respondent numbers reduces <strong>the</strong><br />

generalisability of <strong>the</strong> results. Secondly, retrospective cohort studies can be<br />

completed in much more timely fashion and are considerably less expensive.<br />

Additionally, retrospective studies may be most applicable when extended timelines<br />

are required <strong>to</strong> determine effects (Kelsey et al. 1986).<br />

‘Exposure’ data may exist from previous periods, and in this instance, <strong>the</strong>y may be<br />

used <strong>to</strong> analyse <strong>the</strong> success of a retrospective study (Kahn and Sepos 1989). A<br />

problem of determining exposure <strong>to</strong> drivers of consumption in effect on an individual<br />

is that when using a retrospective study, <strong>the</strong> ability <strong>to</strong> apportion differing levels of<br />

exposure [<strong>to</strong> a driver of consumption] <strong>to</strong> individuals is not possible.<br />

<strong>ANZMAC</strong> 2003 Conference Proceedings Adelaide 1-3 December 2003 689


Researching Considerations<br />

In order <strong>to</strong> investigate patterns of an individual’s consumption, <strong>the</strong> same individual<br />

must provide in<strong>for</strong>mation on <strong>the</strong>ir consumption over time. As such, any study that<br />

requires <strong>the</strong> respondent <strong>to</strong> provide in<strong>for</strong>mation on more than one occasion risks <strong>the</strong><br />

inattendance of <strong>the</strong> respondent <strong>for</strong> subsequent interviews (Kelsey et al. 1986;<br />

Hennekens and Buring 1987; Kahn and Sepos 1989). Adding <strong>to</strong> <strong>the</strong> difficulty is that<br />

early authors on <strong>the</strong> reporting of alcohol consumption found that <strong>the</strong>re is inherent<br />

difficulty in obtaining reliable data (Summers 1970; Miller, Craw<strong>for</strong>d and Taylor<br />

1979; Sobell, Cellucci, Nirenberg and Sobell 1982). These authors have all<br />

researched problem alcohol consumption, but <strong>the</strong> generalisability of <strong>the</strong>se findings <strong>to</strong><br />

<strong>the</strong> population as a whole, is unlikely.<br />

Contrasting <strong>the</strong>se findings, more modern research has revealed that <strong>the</strong> consumer can<br />

more accurately recall <strong>the</strong>ir alcohol consumption habits, as long as s/he is able <strong>to</strong><br />

connect <strong>the</strong> period of consumption <strong>to</strong> a defined period in <strong>the</strong>ir lives (Sobell, Sobell,<br />

Leo and Cancilla 1988; Giovannucci et al. 1991). As such, this study will focus on<br />

making <strong>the</strong> connection in <strong>the</strong> respondent’s mind, between each period of <strong>the</strong><br />

respondent’s life and <strong>the</strong> type of alcohol consumed <strong>by</strong> <strong>the</strong> respondent in that period.<br />

Marketing Examples of Prospective studies<br />

The concept of using <strong>the</strong> same individual <strong>to</strong> respond in subsequent periods is not new<br />

in marketing. Guest conducted a longitudinal study on <strong>the</strong> attitudinal and long-term<br />

behavioural loyalty of consumers <strong>to</strong> brands. His conclusion is that over a period of<br />

approximately ten years, only about 25% of consumers preferring a brand in year 0<br />

continue <strong>to</strong> prefer that brand in year 10 (Guest 1944, 1955, 1964). Guest’s study was<br />

extended across durable, fast-moving-consumer-goods (FMCG) and subscription<br />

markets, and realised similar results <strong>for</strong> each category. However, Guest also<br />

experienced significant problems in contacting <strong>the</strong> same respondents over successive<br />

studies. Consequently, <strong>the</strong> genralisability of findings in prospective studies is always<br />

an area of concern <strong>for</strong> <strong>the</strong> researcher.<br />

Shatzberg and <strong>the</strong> INRA/ONIVINS describes <strong>the</strong> way that <strong>the</strong> French have attempted<br />

<strong>to</strong> combat <strong>the</strong> issue of ‘drop-out’ in subsequent periods (Shatzberg 1995; Inra and<br />

Onivins 2001). The INRA/ONIVINS conduct a survey of <strong>wine</strong> consumption habits of<br />

a cross-section of respondents in France every five years. The survey instrument uses<br />

quotas <strong>to</strong> determine when a representative sample of <strong>the</strong> French demographic and<br />

geographic constituency is achieved. There<strong>for</strong>e, each successive period illustrates a<br />

summary of <strong>the</strong> alcohol consumption patterns of <strong>the</strong> population of France. However,<br />

a problem in this methodology is still evident in that an assertion of changes in<br />

consumption is still questionable as different respondents are interviewed <strong>for</strong> each<br />

study.<br />

Conceptual Papers / Marketing Theory Track 690


Testing <strong>for</strong> validity<br />

This study will compare alcohol consumption of all types because <strong>the</strong> data exists <strong>for</strong><br />

all alcohol consumption in 1994/5 and <strong>the</strong> 1998 study of alcohol consumption of <strong>the</strong><br />

Australian population, conducted <strong>by</strong> <strong>the</strong> ABS. Consequently, a higher level of<br />

validity will be possible as beer, spirits and o<strong>the</strong>r alcohols can be used <strong>to</strong> add validity<br />

<strong>to</strong> <strong>the</strong> data on <strong>wine</strong> consumption.<br />

The results from this study will compare each respondent’s <strong>wine</strong> consumption habits<br />

in 1994/5 and 1998. These periods represent <strong>the</strong> Australian Bureau of Statistics’<br />

(ABS) few studies in<strong>to</strong> <strong>the</strong> <strong>wine</strong> consumption habits of <strong>the</strong> Australian population. By<br />

comparing <strong>the</strong> respondents’ reported types of alcohol consumed over <strong>the</strong>se periods<br />

with <strong>the</strong> data provided <strong>by</strong> <strong>the</strong> ABS on alcohol consumption patterns, a level of<br />

validity can be attributed <strong>to</strong> <strong>the</strong> consumer’s capacity <strong>to</strong> recall <strong>the</strong>ir alcohol<br />

consumption patterns.<br />

Generating Empirical Data on Wine Consumption<br />

The difficulty <strong>for</strong> investigating previous alcohol consumption habits is in accurately<br />

obtaining <strong>the</strong> data from consumers. His<strong>to</strong>rically, it was believed that earlier<br />

consumption habits could not be researched because of a consumer’s inability <strong>to</strong><br />

accurately record <strong>the</strong>ir type or level of consumption in prior periods. (Parfitt 1967).<br />

However, Parfitt also found that respondents were able <strong>to</strong> recall <strong>the</strong>ir behaviour more<br />

reliably when <strong>the</strong> behaviour was a regular event.<br />

This is a problem <strong>for</strong> researching retrospectively, but <strong>the</strong> authors below have shown<br />

that consumers cannot only recall <strong>the</strong>ir alcohol consumption his<strong>to</strong>rically, if <strong>the</strong><br />

method of surveying is appropriate <strong>for</strong> <strong>the</strong> study, <strong>the</strong>re is <strong>the</strong> <strong>potential</strong> <strong>to</strong> record<br />

accurate data.<br />

Reporting Wine Consumption<br />

Early authors on reporting alcohol consumption purport that a respondent’s answers<br />

lack reliability. However, studies <strong>by</strong> Sobell, Hil<strong>to</strong>n, Giovannucci and o<strong>the</strong>rs have<br />

indicated that <strong>the</strong> consumer can recall <strong>the</strong>ir alcohol consumption from previous<br />

periods with a high degree of accuracy (Sobell et al. 1988; Hil<strong>to</strong>n 1989; Giovannucci<br />

et al. 1991). These studies utilised different methods of surveying a respondent’s<br />

recall, and over varying durations of time, with similar results.<br />

Sobell and o<strong>the</strong>rs found that consumers can recall <strong>the</strong>ir alcohol consumption over<br />

specific periods of time, when <strong>the</strong> consumer is prompted <strong>to</strong> recall <strong>the</strong>ir consumption<br />

over subsequent days of <strong>the</strong> week, from <strong>the</strong> start of <strong>the</strong> study. This method is referred<br />

<strong>to</strong> as <strong>the</strong> ‘Timeline’ method, and is reliable when <strong>the</strong> consumer is given time <strong>to</strong> recall<br />

<strong>the</strong>ir alcohol consumption from day-<strong>to</strong>-day over <strong>the</strong> life of <strong>the</strong> study (Sobell et al.<br />

1988).<br />

Hil<strong>to</strong>n also found that a consumer’s prompted recall method and diary recording can<br />

both be effective ways of investigating a consumer’s alcohol consumption patterns<br />

(Hil<strong>to</strong>n 1989). Hil<strong>to</strong>n highlighted a number of researchers who have had varying<br />

<strong>ANZMAC</strong> 2003 Conference Proceedings Adelaide 1-3 December 2003 691


levels of success with both methods, and suggested that <strong>the</strong> recall method can be<br />

successful if <strong>the</strong> respondent is not asked <strong>to</strong> recall specific characteristics about unique<br />

events in <strong>the</strong>ir past.<br />

The study conducted <strong>by</strong> Giovannucci and o<strong>the</strong>rs, shows that <strong>the</strong> consumer’s ability <strong>to</strong><br />

recall alcohol consumption in a period four years earlier, can be only marginally less<br />

accurate (R 2 value between 0.8 and 0.9, depending on <strong>the</strong> gender and time) than <strong>the</strong>ir<br />

ability <strong>to</strong> recall consumption from <strong>the</strong> previous week (Giovannucci et al. 1991). This<br />

study measured <strong>the</strong> respondents’ serum levels in <strong>the</strong> days following <strong>the</strong>ir alcohol<br />

consumption and interviewed <strong>the</strong> same respondents four years after <strong>the</strong> first study.<br />

The findings are promising, but <strong>the</strong> researchers did not control <strong>for</strong> whe<strong>the</strong>r <strong>the</strong><br />

respondents had changed <strong>the</strong>ir consumption patterns from <strong>the</strong> earlier period.<br />

Fur<strong>the</strong>r, Rasmussen and Lockshin’s findings that consumers select <strong>wine</strong> <strong>by</strong> <strong>the</strong> grape<br />

variety is significant <strong>for</strong> this study. As consumers expect <strong>to</strong> purchase <strong>by</strong> <strong>the</strong> grape<br />

variety of <strong>the</strong>ir preference, Parfitt’s findings ‘that regular purchases are most likely <strong>to</strong><br />

be recalled accurately’ support <strong>the</strong> aims of this study. Consequently, as long as data<br />

on a respondent’s alcohol consumption is restricted <strong>to</strong> type (or variety) and style of<br />

alcohol consumed, <strong>the</strong>re is reason <strong>to</strong> suggest that retrospective consumption habits<br />

can be illustrated <strong>for</strong> <strong>the</strong> <strong>potential</strong> benefit of <strong>demand</strong> <strong><strong>for</strong>ecast</strong>ing.<br />

Methodology<br />

Consumers will be asked <strong>to</strong> indicate <strong>the</strong>ir <strong>wine</strong> consumption habits over numerous<br />

periods of <strong>the</strong>ir lives. Consumers will be interviewed <strong>to</strong> investigate <strong>the</strong>ir consumption<br />

of alcohol in 1994/5 and 1998, <strong>by</strong> determining when <strong>the</strong>y first drank <strong>wine</strong>, what style<br />

<strong>the</strong>y drank and asking about when <strong>the</strong>se patterns changed. For those who have<br />

changed <strong>the</strong>ir consumption habits, <strong>the</strong>y will be asked <strong>to</strong> indicate at what point in <strong>the</strong>ir<br />

lives <strong>the</strong>y changed <strong>the</strong>ir consumption habits. For those consumers who have not<br />

changed <strong>the</strong>ir consumption habits, <strong>the</strong>y will be asked when <strong>the</strong>y began <strong>to</strong> consume<br />

alcohol and what type(s) of alcohol <strong>the</strong>y consume.<br />

The results from this panel of consumers will be compared <strong>to</strong> <strong>the</strong> findings from <strong>the</strong><br />

ABS studies in 1994/5 and 1998 <strong>by</strong> using a chi-squared test of difference, or an<br />

analysis of <strong>the</strong> variance (ANOVA) between <strong>the</strong> study’s findings and <strong>the</strong> outcome<br />

from <strong>the</strong> ABS’ study, whichever one is appropriate <strong>for</strong> <strong>the</strong> data provided.<br />

The field of Epidemiology often has <strong>to</strong> undertake studies over a long period of time <strong>to</strong><br />

investigate causes of change in <strong>the</strong> health of an individual. Primarily, <strong>the</strong> methods<br />

used are Cohort, Case-control and retrospective cohort studies. These methods are<br />

used when changes are required <strong>to</strong> be illustrated over time. A retrospective cohort<br />

study is used <strong>to</strong> investigate his<strong>to</strong>rical changes in individual’s behaviours, but is not<br />

extended <strong>for</strong> any period fur<strong>the</strong>r than <strong>the</strong> present. This methodology is <strong>the</strong>re<strong>for</strong>e ideal<br />

<strong>for</strong> surveying his<strong>to</strong>rical <strong>wine</strong> consumption patterns.<br />

Conceptual Papers / Marketing Theory Track 692


Expectations<br />

Epidemiology literature suggests that consumers can recall <strong>the</strong>ir consumption habits,<br />

as long as <strong>the</strong> questions posed are not <strong>to</strong>o specific or technical. Requesting<br />

in<strong>for</strong>mation on brands consumed would be questionable, but surveying respondents<br />

on <strong>the</strong> type of <strong>wine</strong> consumed should provide <strong>the</strong> requisite in<strong>for</strong>mation sought in this<br />

study. However, <strong>the</strong>re is a common perception in marketing that consumers cannot<br />

accurately recall <strong>the</strong>ir consumption patterns of <strong>the</strong> past (Romaniuk and Robertson<br />

1999; Sharp 2002). This study will help <strong>to</strong> determine whe<strong>the</strong>r retrospective studies<br />

have validity <strong>for</strong> recalling his<strong>to</strong>rical consumption patterns <strong>by</strong> testing <strong>the</strong> findings of<br />

this study with empirical data on a representative sample of <strong>the</strong> population.<br />

Conclusions<br />

Consequently, a study that investigates consumers’ recollections of <strong>the</strong>ir his<strong>to</strong>rical<br />

alcohol consumption can be tested against <strong>the</strong> findings of <strong>the</strong> studies conducted <strong>by</strong> <strong>the</strong><br />

ABS. If it is found that <strong>the</strong> consumer has <strong>the</strong> capacity <strong>to</strong> recall <strong>the</strong>ir consumption<br />

patterns in earlier periods, marketers have <strong>the</strong> <strong>potential</strong> <strong>to</strong> conduct retrospective<br />

studies <strong>to</strong> obtain data on changes in consumption quickly, ra<strong>the</strong>r than waiting years<br />

through longitudinal or cross-sectional studies <strong>to</strong> moni<strong>to</strong>r behaviour.<br />

For Fur<strong>the</strong>r Research<br />

There is a need <strong>for</strong> fur<strong>the</strong>r investigation in this area of research, as <strong>the</strong> patterns of<br />

<strong>wine</strong> consumption habits have not been investigated in a longitudinal study using <strong>the</strong><br />

same respondents. This study explores <strong>the</strong> <strong>potential</strong> benefits <strong>to</strong> <strong>the</strong> <strong>wine</strong> industry <strong>by</strong><br />

identifying whe<strong>the</strong>r consumers can recall <strong>the</strong>ir alcohol consumption habits<br />

retrospectively. If consumers can be found <strong>to</strong> recall <strong>the</strong>ir alcohol consumption over<br />

time, <strong>the</strong>re is <strong>the</strong> <strong>potential</strong> <strong>to</strong> establish empirical data on <strong>the</strong> patterns of alcohol<br />

consumption over respondents’ lives.<br />

In <strong>the</strong> first instance this may be found <strong>to</strong> apply <strong>to</strong> beverage types, but may also prove<br />

valid <strong>for</strong> varietal choice. This would deliver value <strong>to</strong> <strong>the</strong> many growers who agonise<br />

over “which variety should I plant now, <strong>for</strong> production seven years away?”<br />

Academics<br />

The methodology used in this study will be <strong>the</strong> pioneering of <strong>the</strong> use of a<br />

retrospective cohort study on alcohol consumption. The reporting of alcohol<br />

consumption in much of <strong>the</strong> early literature suggests that <strong>the</strong> consumer’s recall is<br />

unreliable, or that s/he deliberately falsifies <strong>the</strong>ir alcohol intake (Cahalan and Cisin<br />

1967; Summers 1970; Miller et al. 1979; Poikolainen and Kärkkäinen 1983).<br />

However, <strong>the</strong>se authors obtained <strong>the</strong>ir respondents in ano<strong>the</strong>r country or a hospital<br />

ward of rehabilitating alcoholics. These differences reduce <strong>the</strong> generalisability <strong>to</strong> <strong>the</strong><br />

Australian population.<br />

There is support <strong>for</strong> <strong>the</strong> consumer’s ability <strong>to</strong> recall <strong>the</strong>ir alcohol consumption from<br />

previous periods, in both short (Sobell et al. 1988) and long- term (Giovannucci et al.<br />

1991) his<strong>to</strong>ry. There<strong>for</strong>e, with <strong>the</strong> support of previous researchers, it is important <strong>to</strong><br />

<strong>ANZMAC</strong> 2003 Conference Proceedings Adelaide 1-3 December 2003 693


generate some empirical data on <strong>the</strong> alcohol consumption patterns of Australian<br />

consumers.<br />

Practitioners<br />

This investigation highlights <strong>the</strong> <strong>potential</strong> <strong>for</strong> building a strategic industry advantage<br />

<strong>by</strong> identifying methods <strong>to</strong> use <strong>to</strong> record his<strong>to</strong>rical consumption. Subsequently,<br />

<strong><strong>for</strong>ecast</strong>ing long-term production goals can be effected as a way <strong>to</strong> meet consumer<br />

<strong>demand</strong>s. Additionally, this in<strong>for</strong>mation would aid <strong>the</strong> <strong>wine</strong> industry’s capacity <strong>to</strong><br />

develop <strong>wine</strong> types desired <strong>by</strong> consumers in line with empirical patterns of <strong>wine</strong><br />

consumption.<br />

Conceptual Papers / Marketing Theory Track 694


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Conceptual Papers / Marketing Theory Track 696


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<strong>ANZMAC</strong> 2003 Conference Proceedings Adelaide 1-3 December 2003 697

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